Australian company to buy back shares thanks to annual profit

BlueScope has forecasted sharply higher earnings for the first half of the current fiscal year, though it said it wasn't sure how long the strong market conditions would continue.

The steelmaker said on Monday it had made a net profit of A$1.19 billion (US$877 million) in the 12 months through June. This is compared to a profit of A$96.5 million in the same period of the previous year.

Management declared a final dividend of A$0.25 per share and a special dividend of A$0.19 per share, increasing the full-year payout to A$0.50 per share.

BlueScope said the board now plans to target an ordinary annual dividend of AUD 0.50 or AUD 0.25 per half.

BlueScope also said it has approved a share repurchase of up to A$500 million over the next 12 months.

Annual core earnings before interest and taxes total A$1.72 billion. BlueScope marked the record second half underlying Ebit last month, highlighting strong revenue from its Australian and US steel businesses.